Open form with password C#

Hi,

In my app you need a password and username in Form1 to get in Form2. But when I click on cancel (the red button in the upper right) Form1 closes and it opens Form2 just like that. I've also have a made a cancel button.

If I use e.Cancel = true; the won't close at all. I want that de red button is disabled and the cancel is enabled..how do I do this?

Thanks